Texas Company and Two Individuals Indicted for Environmental Crimes

WASHINGTON—Two individuals including a company executive have been indicted for
their roles in a conspiracy to illegally transport and dispose of hazardous
waste, the Justice Department announced.

John Kessel, the president and owner of Texas Oil and Gathering, Inc., and
Edgar Pettijohn, the company’s operations manager, were arrested and charged
today with illegally disposing of hazardous waste at facilities only approved to
take oil and gas production waste. Texas Oil and Gathering, Inc., a licensed
hazardous waste transporter and used oil handler, was also named in the
indictment.

Kessel and Pettijohn were arraigned today in U.S. District Court in Houston,
Texas. They are charged with 14 felony counts including conspiracy, violating
the Safe Drinking Water Act and violating the Resource Conservation and Recovery
Act.

The Underground Injection Control provision of the Safe Drinking Water Act
prohibits the unauthorized use of injection wells to prevent contamination of
drinking water sources. The Environmental Protection Agency (EPA) defines five
classes of injections wells according to the type of fluid they inject. Class
II injection wells reinsert fluids associated with oil and natural gas
production back into the ground. Most of the injected fluid is saltwater or
brine that is produced when oil and gas are extracted from the earth. It is
illegal to dispose of anything other than these fluids through Class II
injection wells during this process.

Kessel and Pettijohn allegedly conspired to purchase hazardous waste from
multiple generator facilities and process it at their Texas Oil and Gathering
facility. The pair then sold portions as a fuel additive, and directed their
employees to transport the remaining hazardous waste, disguised with documents
indicating the waste was from an oil production well, to “Disposal Facility A,”
which was not permitted by the EPA to accept, store or dispose of hazardous
material.

Once at Disposal Facility A, the hazardous waste was disposed into Class II
injection wells in violation of the law. In furtherance of the conspiracy,
Kessel and Pettijohn falsified bills of lading and trip tickets which
misrepresented the origin and type of waste they were transporting.

If convicted, Kessel and Pettijohn each face 5 years in prison, and the
individuals and the company each face substantial fines.

An indictment is merely an allegation, and the defendants are presumed
innocent unless proven guilty.

The investigation was conducted by the EPA—Criminal Investigation Division, the
Texas Environmental Task Force, the Houston Police Department, and the
Department of Transportation, Office of Inspector General. The prosecution is
being handled by the Justice Department’s Environmental Crimes Section.